Dáil Éireann Debate, Tuesday - 3 July 2012
184 Deputy Pearse Doherty asked the Minister for Finance if he will provide the figure for the total amount of staple finance provided by the National Asset Management Agency, split by country; the average interest rate charged by NAMA; the average yield on the property sold; the maximum percentage of the sale price financed by NAMA and the maximum length of time over which the staple finance is to be repaid. [31659/12]
View answerAs previously advised to the Deputy, there is no single standard set of terms for stapled debt which NAMA may offer to parties acquiring commercial property from NAMA borrowers or receivers. Terms quoted will vary to reflect the attributes of various commercial property categories and individual properties, the varying strengths of tenants and leases, and the strength of counterparties/property purchasers. NAMA advises that only strong and reputable counterparties will be considered for stapled finance. For instance, NAMA advises that for prime investment properties, that is properties whose investment characteristics include, for instance, good location and strong tenants on leases with long maturity at realistic rents, which would qualify for the most generous loan terms, NAMA may offer up to 70% of the purchase price for a period of 5 years at a typical interest margin of 3% over cost of funds. NAMA further advises the first sale of property using staple finance provided by the Agency was that of No 1 Warrington Place in Dublin; that there are a number of further such sales in the pipeline; and that NAMA envisages that it will make up to €2 billion in staple finance available to purchasers of commercial properties controlled by its debtors and receivers in markets in which those debtors and receivers hold commercial properties. The Agency advises that the further detail sought by the Deputy is commercially sensitive and that disclosure of the information would impede NAMA's ability to negotiate the best possible outcome for the Irish taxpayer in each disposal undertaken by its debtors and receivers.
185 Deputy Pearse Doherty asked the Minister for Finance further to ParliamentaryQuestion No. 60 of 13 June 2012, if he will advise in relation to residential property, andapart from the National Assets Management Agency 80-20 deferred payment initiative, the total value of deferred payments sanctioned by NAMA; the maximum length of time forwhich payment is deferred and the average interest rate charged on deferred payments. [31660/12]
View answerNAMA has advised me that the information sought by the Deputy is commercially sensitive me but also that the instances are few where NAMA has provided this facility. Disclosure of the information would undermine NAMA's future negotiation position in respect of the disposal of residential properties under the control of its debtors and receivers and could thereby reduce the realised proceeds for the Irish taxpayer from such sales. Full details of NAMA's 80:20 Deferred Payment Initiative are available on the Agency's website, www.nama.ie.
186 Deputy Pearse Doherty asked the Minister for Finance the consideration he gave to the concession added in the most recent memorandum of understanding on specific economic policy conditionality whereby the National Asset Management Agency is now required as a term of the bailout, to redeem €7.5 billion of senior bonds by the end of 2013. [31661/12]
View answerI can advise the Deputy that there were commitments on NAMA in previous Troika documentation. The May 2011 Memorandum of Understanding with the Troika included a target for the disposal of assets by NAMA by the end of 2013. The NAMA Board had set a target of repaying €7.5bn of the NAMA Senior Bonds in issue by the end of 2013. In the most recent meetings with the Troika it was agreed that the Memorandum of Understanding be amended to align to this more appropriate, but closely related, target.
The debt repayment target is considered to be a more appropriate measure to monitor than asset disposals, which can be impacted by currency and other external factors. The Troika seek progress reports on the target at the quarterly meetings with NAMA.
